Hi all,
As posted in the last blog of Bears Attack, thanks to multiple negative signals, Nifty lost it all after breaking 11630 and plummeted by almost 800 points to create a bottom near 10866.
People who are short now should look at booking some profits, and in fact can even think of taking a bull mode.
Thanks to a Bullish Harami pattern on daily charts, looks like that the bottom can be in place near the recent lows of 10850, at least for short term, and after such a sharp fall in the markets, even its fair to expect a small bounce, if not a trend change. Also, the recent bottom, is exactly in a rising window (upward gap between 9&10th July) on daily charts, which supports a small bounce. (Please refer the graph below). Moreover, the candle on the day of sharp sell off, is actually a candle with bullish pressure, looking similar to a Hammer pattern
The only thing against the bull yesterday was that the market breadth, with Advance Decline ratio of 7:11, which favours the bulls
However, risky traders are advised to take a long trade, if and only if Nifty surpasses 11100 mark with stop loss below the supports of 10850 and with targets near the resistances of 11200-11350-11520-11600.
Since the stop loss is very wide (almost of 250 points), one can enter partially above 11100 and even buy on dips, if any, as per one's risk appetite.
Cheers
Hrishi
As posted in the last blog of Bears Attack, thanks to multiple negative signals, Nifty lost it all after breaking 11630 and plummeted by almost 800 points to create a bottom near 10866.
People who are short now should look at booking some profits, and in fact can even think of taking a bull mode.
Thanks to a Bullish Harami pattern on daily charts, looks like that the bottom can be in place near the recent lows of 10850, at least for short term, and after such a sharp fall in the markets, even its fair to expect a small bounce, if not a trend change. Also, the recent bottom, is exactly in a rising window (upward gap between 9&10th July) on daily charts, which supports a small bounce. (Please refer the graph below). Moreover, the candle on the day of sharp sell off, is actually a candle with bullish pressure, looking similar to a Hammer pattern
The only thing against the bull yesterday was that the market breadth, with Advance Decline ratio of 7:11, which favours the bulls
However, risky traders are advised to take a long trade, if and only if Nifty surpasses 11100 mark with stop loss below the supports of 10850 and with targets near the resistances of 11200-11350-11520-11600.
Since the stop loss is very wide (almost of 250 points), one can enter partially above 11100 and even buy on dips, if any, as per one's risk appetite.
Cheers
Hrishi
